Imports Arrival Coupled with Smelter Maintenance, TCs Continue to Rise in June [SMM Zinc Concentrates Weekly Review]

SMM News on May 30:

Zinc concentrate TCs increased WoW. The average weekly SMM Zn50 domestic TC rose 100 yuan/mt (metal content) WoW to 3,600 yuan/mt (metal content), while the average weekly SMM Zn50 imported TC remained unchanged WoW at $45/dmt.

In the spot ore market, this week marked the peak period for negotiations on domestic zinc concentrate TCs, with most regions finalising their zinc concentrate TCs. In regions such as Inner Mongolia, north-east China, and Guangxi, influenced by the supplement of imported zinc ore or smelter maintenance, the increase in TCs was relatively significant. In terms of imported zinc ore, the import window for zinc ore remained closed WoW, and the spot offer prices from market traders did not improve. Zinc ore transactions were also sluggish, and zinc concentrate TCs remained stable WoW. From the perspective of supply and demand, due to the continuous arrival of imported zinc ore, domestic smelters' TCs for June continued to increase. However, the inventory of zinc ore at ports declined significantly. Some newly commissioned smelters are expected to gradually commence production, and smelters that underwent maintenance earlier are also resuming production, indicating robust demand for zinc ore. Therefore, the room for further increases in TCs may be limited. Additionally, the tender price for zinc ore from a certain mine in south-west China in June was recently set at 3,600 yuan/mt (metal content), up 60 yuan/mt (metal content) WoW. SMM will continue to monitor changes in subsequent TCs.

This week, the total inventory of zinc concentrates at SMM's main ports in China was 316,000 mt, a decrease of 42,000 mt WoW. Port zinc ore inventory continued to decline.

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